Welcome to the Beginners in Stock Trading Newsletter! Over the next several months, you’ll receive expert insights, proven strategies, and real-world examples from some of the greatest stock traders in history.
Every newsletter has 2 sections. The 1st section is devoted to learning. Each building on the previous day’s lesson in logical order. Giving you a full, free trading education in under ten minutes a day.
Missed a day? You can find all of the previous newsletters online to catch up or if you joined later.
The 2nd half of the newsletter is a briefing on 1-3 stocks in the news. Read it. Then click on the links to see the corresponding charts inside the original articles. This will accelerate your ability to read the charts.
Learning to how to trade will change your life.
Daily Lesson(each builds onto the next)
📝 Today, You’ll Learn:
✅ How moving averages help you identify trends, time entries, and manage trades.
✅ The difference between short-term and long-term moving averages—and how pros use both.
✅ How William O’Neil, founder of IBD, used the 10-week line to ride monster winners.
Moving averages may be the most underestimated tool in trading.
They’re simple—but in the right hands, they’re strategic weapons for trend confirmation, timing, and discipline.
📖 William O’Neil emphasized:
“One of the best tools for staying in big winners is the 10-week moving average. It helps eliminate emotion and gives you structure.”
Let’s break down which moving averages matter, how they’re used, and how O’Neil mastered them to build legendary trades.
📊 Understanding the Core Moving Averages
✅ 10-Day EMA (Exponential Moving Average)
Used for short-term swing entries, especially in tight consolidations.
Helps active traders catch quick pivots or flag breakouts.
Minervini often looks for strength above this line during base breakouts.
✅ 21-Day EMA
Short-to-medium term.
A go-to line for institutions to gauge trend strength.
Strong stocks often pull back to this line on low volume before resuming.
✅ 50-Day SMA (or 10-Week on weekly charts)
The most commonly used institutional trend line.
A stock holding this line during an uptrend is usually under accumulation.
Breaks below this level (on volume) are red flags.
✅ 200-Day SMA
Tracks long-term trend health.
Don’t buy below this line—it’s where weak stocks hide.
Great stocks usually launch well above it, using the 50-day or 21-day as springboards.
📈 The Power of the 10-Week Line – O’Neil’s Secret Weapon
O’Neil discovered that his biggest winners—including Apple, Amgen, Priceline—had one thing in common:
📖 “After breaking out, they would often pull back to their 10-week moving average, then rebound sharply. That line helped me stay in for the entire move.”
🟢 When to Use It:
After a breakout: If a stock pulls back to the 10-week and holds on low volume, it’s likely just a healthy shakeout.
If the stock breaks below it on heavy volume = exit.
🟢 How to Hold Big Winners:
Once you’re in, ignore daily noise.
Use the 10-week line on weekly charts as your primary guide.
Only sell if the line is broken decisively—or if your initial sell rules are triggered.
📖 Jesse Livermore also said:
“The big money is not in the buying and selling—but in the waiting.”
🧠 Spotlight on William O’Neil: The Technician Who Systemized Growth
Founder of Investor’s Business Daily (IBD) and creator of CAN SLIM.
Combined fundamentals (earnings, leadership) with technicals (patterns, breakouts, moving averages).
Advocated for trend-following discipline, studying model book stocks, and using moving averages to remove emotion.
💡 Fun Fact: O’Neil’s earliest wins—Syntex, Amgen—used the 10-week rule. He realized stocks under institutional accumulation often held this level for weeks before resuming massive trends.
📌 Trader’s Checklist: Moving Average Mastery
✅ Am I using the right MAs for my timeframe (10-day for entries, 10-week for holds)?
✅ Is the stock respecting its 21-day or 50-day line during the trend?
✅ Is volume confirming the bounce off a key MA—or breaking it down?
✅ Have I looked at the weekly chart for 10-week clarity?
✅ Am I using MAs to stay in winners—not just as an exit excuse?
🎯 Action Step: Track the 10-Week Rule in Action
✅ Pick 3 leading stocks that recently broke out.
✅ Pull up their weekly chart and overlay the 10-week moving average.
✅ Ask:
Has the stock pulled back to the 10-week before resuming?
Is it showing tight price action above the line?
Would this have helped me stay in longer—or exit faster?
Train Your Eyes On This Pattern(of the week)
Cup with Handle
📌 Understanding stock price growth:
Look up the historical stock chart of Apple (AAPL) from 2004 to 2024. Notice how the stock’s price has risen steadily over time with some pullbacks.
Use these market tools to scan for and review stocks:
✅ MarketSmith (MarketSurge) – Premium Market Analysis and Scanner Tool
✅ Charts.com – Budget-Friendly Charting Option
✅ TradingView – Free & Subscription Stock and Crypto Charts
✅ DeepVue – MarketSurge Inspired Analysis and Scanner
👀 Seeing real-world stock patterns helps train your eye for long-term trends.
Our Sister Newsletter. Because everyone’s a Beginner in something.
News
TECH WINS, DOW DIPS: GOOGLE JUMPS, TRUMP TARIFFS STIR THE POT
The Dow finally hit pause after three days of gains... while tech stocks kept the fire alive 🔥. Alphabet (GOOGL) reported strong earnings and pushed the Nasdaq higher, even with all eyes on new tariff talk surrounding Trump and China. Tensions are rising, and headlines are flying—but for now, Google stole the spotlight.
Apple stayed flat after a rocky start, but made headlines saying it plans to make all U.S. iPhones in India by 2026. Meanwhile, gold stocks lost some shine, Gilead slipped, and small caps struggled. One bright spot? BYD, the Chinese EV giant and Tesla rival, posted booming profits. Oh, and Charles Schwab is knocking on the door of a breakout after a Goldman Sachs upgrade.
Want the full picture—including who’s rising, who’s falling, and what to watch next?👉 Click here to read the full story from Investor’s Business Daily
Stock Spotlight
📈 Stock Spotlight: MercadoLibre (MELI) – Latin America's E-Commerce Giant
Looking for a high-growth stock with strong fundamentals and market momentum? MercadoLibre (MELI)—often called the Amazon of Latin America—just might be your next smart move.
Here’s why MELI is catching Wall Street’s eye:
Earnings Momentum: Expected to report $7.67 EPS for Q1 2025—a 13.1% increase year-over-year.
Revenue Growth: Anticipated sales of $5.53B, up 27.5% from last year.
Analyst Love: 15 of 16 analysts rate it a Buy, with a consensus price target of $2,464 (about a 16% upside from current levels).
Strong Institutional Support: A whopping 88% institutional ownership—that’s big money backing this stock.
Track Record of Surprises: MELI has beaten earnings estimates in 3 of the last 4 quarters, including a massive beat last quarter ($12.61 EPS vs $7.26 expected).
💡 Why it matters: MELI isn't just riding the e-commerce wave—it's also growing its fintech arm, MercadoPago, making it a double threat in Latin America's digital economy. For busy investors, it’s a stock that’s not just promising, but historically reliable.
Refer a friend
5 referrals How to Make Money in Stocks Complete Investing System by O’Neill
10 referrals How to Make Money in Stocks Success Stories by O’Neill
15 referrals How to Make Money in Stocks, Getting Started by Matthew Galgani
30 referrals Trade Like a Stock Market Wizard by Mark Minervini
50 referrals Lifetime access to the upcoming video courses and 50% off live events and digital products
How to Make Money in Stocks Set
Thank you for reading. We’re all Beginners in something!
-Beginners in Stock Trading Team
This newsletter is for educational and informational purposes only. The content herein should not be considered financial advice, investment advice, trading advice, or a recommendation to buy or sell any securities or financial instruments.The strategies, opinions, and examples shared reflect the personal views and historical references from publicly available sources, including the works of William J. O’Neil, Jesse Livermore, Mark Minervini, and other professional traders.Trading in the stock market involves risk, including the risk of losing capital. Past performance is not indicative of future results. You should conduct your own due diligence and consult with a licensed financial advisor or registered investment professional before making any investment decisions.
We do not guarantee any specific outcome or profit. You are solely responsible for your own financial decisions and trading actions.